Consumer price index, 15 February 2008

The consumer price index (CPI) was 121.9 (1998=100) per February 2008 compared with 117.5 at the same time last year. This is equivalent to a year-to-year growth of 3.7 per cent, unchanged from January. The year-to-year growth in the CPI adjusted for taxes and excluding energy (CPI-ATE) was 2.2 per cent in January 2008.

Higher food prices and end of sales

The CPI increased by 0.5 per cent from January to February. The main contributor to this development was a sharp increase in prices of food. Food prices rose by 2.2 per cent from January to February, the highest monthly increase since 1982. Most groups of food showed a price increase in February, but bread and corn products, pasta, milk and oil and fat increased the most, due to increased prices of raw materials. In addition to food, several other daily products showed large price increases, most notably products for cleaning and personal care.

Whereas January was characterised by seasonal sales, February was characterized by higher prices of several consumer groups. Prices of furniture rose by 5.1 per cent while prices of clothing and footwear rose by 1.7 per cent. Higher prices of transport services also contributed to the CPI increase.

Lower prices of electricity were the main dampening factor to CPI growth. For the first time since August last year, prices fell in February, and were 6.1 per cent lower than in January 2008.

Year-to-year change: Electricity prices behind growth in CPI

The CPI rose by 3.7 per cent from February 2007 to February 2008. Although prices of electricity, including the cost of transport, fell in February, they were 27.9 per cent higher than in February last year and therefore the main contributor to the CPI growth. Other major contributors to the year-to-year growth were higher prices of operation and maintenance of personal transport equipment, maintenance and repair of dwellings, food and non-alcoholic beverages and products for personal care.

Three consumer groups in particular pulled the yearly growth in the opposite direction. Prices of communications fell by 8.3 per cent, while prices of audio-visual equipment and clothing fell by 6.6 and 3.4 per cent respectively.

The CPI-AT rose by 3.8 per cent from February 2007 to February 2008